By Scott White
Woodford Sun Staff
Versailles Mayor Laura Dake presented her proposed budget, as required by city ordinance and statute, to the Versailles City Council meeting on Tuesday, May 19.
Dake presented a general fund, enterprise fund, and capital budget of $30,500,000 which she said represents a “modest increase of 4.3 percent to the general fund operation.”
Dake said revenues remain strong despite the hit the city took on payroll taxes from the departure of Yokohama last May. She projected revenues of $15,841,489.
Dake proposed a 3 percent salary increase to reflect the 2.4 percent increase in the Consumer Price Index (CPI), and said that in addition to pension contributions, health and dental insurance, the city will now cover an additional life insurance benefit, from $15,000 to $30,000.
Some of the highlights of her proposed general fund budget include: a $2 million pay down on a 2022 Bond Anticipation Note that is now at $8 million, which will reduce principal to $6 million and produce savings of $527.5K; an increase in the police department budget to cover fleet replacement and a new firing range; an annual payment of $156K to the fire department for a new ladder truck, which was approved at the last City Council meeting; donations for the Woodford Foundation, Woodford County Food Pantry, and CASA; capital expenses for improvements to the Martin Luther King Jr. Blvd. and Big Sink Road sidewalk project; funds for new property tax software; continued funding of neighborhood grants; and funding for numerous other road projects. Further, the City Council and clerk’s budgets will remain effectively flat.
Dake summarized her budget blueprint, saying, “Looking forward, there is much to be excited about and grateful for. This budget reflects a balanced, transparent and fiscally responsible plan that aligns with our priorities – increasing economic development opportunities, maintaining and updating core infrastructure and improving quality of life. We have worked to ensure efficient use of public funds, support essential city services and invest in our collective futures. With prudent financial management and focus on outcomes, this budget positions Versailles to meet its current obligations while preparing for future challenges and opportunities.”
The budget discussion and debate will now move to the City Council, which will make the final decision on the 2026-2027 fiscal year budget.
City employee raises
At the April 21 council meeting, Councilmember Lisa Johnson moved to give an across-the-board raise to all city employees of 3.7 percent, which was seconded by Councilmember Gary Jones. Before it could be voted on, Councilmember Fred Siegelman moved to give a 3.7 percent increase to department heads and a 4.7 percent increase to all other city employees, which was seconded by Councilmember Mary Bradley. Both motions were tabled to allow for further discussion at a work session held last week.
At this week’s meeting, both Johnson’s and Signalman’s motions were removed from the table, with the council first taking up Signalman’s motion.
Siegelman said, “This is not political. I wanted to do a 5 percent raise last year when it was not an election year, and was told it was brought up too late, so that is why I’m bringing it up this year. I’ve even tried to compromise by not seeking a 5 percent raise and instead 3.7 for department heads and 4.7 percent for everyone else.”
“My main reason is I believe the 2.7 cost-of-living increase is artificially low and is probably more like 3.7 or 4 percent as things keep going up,” he said. “We are doing very well, we are in good (financial shape), and we can do this to help our employees. The difference between the 3 percent and what I’m proposing is only $130,000.”
Siegelman went on to say his other reasons for the higher rate was: city employees are the most important resource for the city and deserve the increase; this does not cause a “compounding” issue since that argument would mean the city would never give out raises; reasonable increases, as he is proposing, help with employee retention; the “tier” raises between department heads and other employees has precedent both in Versailles with former mayor Brian Traugott doing one, and Govs Jones, Patton, Fletcher and Steve Beshear doing it; the city has approximately $9 million in reserves so it will not pose a financial risk to the city; and some employees are seeing a 2 percent increase in state pension contributions, so their raise will effectively only be 1 percent.
No other councilmember spoke for or against Signalman’s motion.
Dake did indicate that her position on the 3 percent raise in her blueprint had already been stated. She also reminded the council that she is meeting with all of the department heads to go over individual and class salaries, so “some adjustments could be made before (the final budget is voted on).”
The council voted against Signalman’s motion 4-2.
Following that, Johnson withdrew her motion calling for a 3.7 percent across-the-board raise, so that Dake’s proposed raise of 3 percent will be in the budget unless modifications are made following the meetings with department heads.
Contracts
Council approved two contracts: $5,838.30 to Hype Heating & Air for a mini-split replacement for the “green room” building in The District; and a two-year contract with Rumpke Waste and Recycling Services setting collection rates of $20/month for residential and $3/month for cart rental.